3/7/2019 – A negative day with the Dow Jones down 200 points (-0.78%) and the Nasdaq down 84 points (-1.13%)
The stock market remains at an incredibly important juncture. Things are about to accelerate in an unexpected way. If you would like to find out what happens next, based on our timing and mathematical work, in both price and time, please Click Here.
It has been a while since we talked about the USD last time. Well, after successfully calling the exact bottom in both price and time in February of 2018. Here is a very good look at the subject matter…..
More and more voices, including those from current and former Fed governors, are trying to prepare the markets for a Fed rate hike or two later this year — or one later this year and one next year. Yes, they say, the economy hit a soft patch in Q1 due to the government shutdown, delays and lower tax refunds, and some other factors, and Q1 GDP will be lousy. But these voices warn markets that the pace will pick up in Q2 and Q3 to a decent but not exhilarating pace, and that in this environment, the Fed isn’t quite done yet with its rate hike cycle.
That the dollar has been building up momentum since early February and is now at a 52-week high against the DXY basket of currencies is a sign that at least the currency market isn’t totally dead set on a dovish U-turn at the Fed.
Our analysis is somewhat different.
I am selling my long DXY position at this point as the DXY approaches an incredibly important resistance level at around 98. Should it break through this level it can very quickly run up to 105 and above. However, until that happens bullish investors should be cautious. I might re-enter if the DXY breaks above 98, but some sort of a significant pullback should be expected here.
I must add, we no longer spend time analyzing the USD to the extent that we once did. Hence, we are not sure if any TIME turning points are currently lining up with powerful resistance level located at 98.
In terms of the stock market, you don’t have to guess what the stock market will do next under such extreme conditions. If you would like to find out exactly what the stock market will do next, in both price and time, based on our timing and mathematical work, please Click Here.
Please Note: Our latest call was a direct hit. While everyone was panicking our work projected an important bottom on December 27th (+/- 1 trading day) on the Dow at 21,725 (+/- 50 points). An actual bottom was put in place on December 26th at 21,713.
